Unity Software (NYSE:U) Stock Price Expected to Rise, Needham & Company LLC Analyst Says

Unity Software (NYSE:U) had its price objective increased by analysts at Needham & Company LLC from $35.00 to $40.00 in a research report issued on Friday,Benzinga reports. The brokerage currently has a “buy” rating on the stock. Needham & Company LLC’s price target would suggest a potential upside of 49.89% from the company’s current price.

A number of other research firms have also commented on U. Wall Street Zen lowered shares of Unity Software from a “buy” rating to a “hold” rating in a report on Saturday, March 28th. Weiss Ratings restated a “sell (d-)” rating on shares of Unity Software in a research report on Wednesday, January 21st. Barclays lowered their price objective on shares of Unity Software from $35.00 to $28.00 and set an “equal weight” rating for the company in a research note on Thursday, February 12th. Morgan Stanley raised their target price on Unity Software from $30.00 to $32.00 and gave the stock an “overweight” rating in a research note on Friday, March 27th. Finally, Citigroup reduced their price target on Unity Software from $43.00 to $40.00 and set a “buy” rating on the stock in a report on Thursday, April 30th. One analyst has rated the stock with a Strong Buy rating, twelve have given a Buy rating, eight have given a Hold rating and one has issued a Sell rating to the company’s stock. According to MarketBeat, the stock presently has a consensus rating of “Moderate Buy” and an average target price of $38.04.

Unity Software Price Performance

U opened at $26.69 on Friday. The company has a debt-to-equity ratio of 0.52, a current ratio of 1.84 and a quick ratio of 1.84. The stock’s 50 day simple moving average is $22.06 and its 200 day simple moving average is $32.57. The firm has a market cap of $11.64 billion, a price-to-earnings ratio of -27.80, a PEG ratio of 10.05 and a beta of 2.04. Unity Software has a 1 year low of $16.78 and a 1 year high of $52.15.

Unity Software (NYSE:U) last released its quarterly earnings data on Wednesday, February 11th. The company reported $0.24 earnings per share for the quarter, beating analysts’ consensus estimates of $0.20 by $0.04. Unity Software had a negative return on equity of 4.76% and a negative net margin of 21.77%.The firm had revenue of $503.09 million during the quarter, compared to analyst estimates of $490.64 million. During the same quarter in the prior year, the firm posted ($0.30) earnings per share. The business’s quarterly revenue was up 10.1% compared to the same quarter last year. As a group, analysts predict that Unity Software will post 0.13 earnings per share for the current year.

Insider Activity

In related news, CAO Mark Barrysmith sold 10,578 shares of the stock in a transaction dated Wednesday, February 25th. The shares were sold at an average price of $18.07, for a total value of $191,144.46. Following the completion of the transaction, the chief accounting officer directly owned 383,901 shares of the company’s stock, valued at $6,937,091.07. This represents a 2.68% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this link. Also, COO Alexander Blum sold 2,541 shares of Unity Software stock in a transaction that occurred on Friday, February 27th. The shares were sold at an average price of $18.76, for a total value of $47,669.16. Following the sale, the chief operating officer directly owned 548,425 shares in the company, valued at approximately $10,288,453. The trade was a 0.46% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. In the last 90 days, insiders have sold 41,684 shares of company stock valued at $773,350. Corporate insiders own 0.77% of the company’s stock.

Hedge Funds Weigh In On Unity Software

Institutional investors and hedge funds have recently added to or reduced their stakes in the company. Root Financial Partners LLC purchased a new stake in shares of Unity Software in the 3rd quarter worth about $27,000. REAP Financial Group LLC purchased a new position in Unity Software during the 4th quarter valued at about $28,000. Larson Financial Group LLC boosted its stake in Unity Software by 88.1% during the third quarter. Larson Financial Group LLC now owns 728 shares of the company’s stock worth $29,000 after acquiring an additional 341 shares in the last quarter. V Square Quantitative Management LLC bought a new stake in shares of Unity Software in the 4th quarter worth approximately $30,000. Finally, IFP Advisors Inc bought a new stake in Unity Software in the third quarter worth $33,000. Hedge funds and other institutional investors own 73.46% of the company’s stock.

Unity Software News Roundup

Here are the key news stories impacting Unity Software this week:

• Positive Sentiment: Management reiterated strong growth and an ambitious product roadmap on the Q1 earnings call, projecting strategic ad revenue to grow ~50% year‑over‑year and signaling margin expansion in Q2. Fool: Q1 2026 Earnings Call Transcript
• Positive Sentiment: Revenue beat: Unity reported Q1 revenue of ~$508M, up ~17% YoY and slightly above consensus, showing continued top-line momentum. Proactive: Unity Q1 Revenue Beat
• Positive Sentiment: Analyst support: BTIG raised its price target to $43 and kept a Buy rating (large upside vs. current levels), reflecting bullish analyst conviction on the company’s growth path. StreetInsider: BTIG PT Raise
• Positive Sentiment: Options activity showed notable bullish interest — unusually high call buying (≈57,980 calls), which can signal investor/speculator optimism for near‑term upside.
• Positive Sentiment: Sector tailwind: gaming/AI chip rally (e.g., AMD strength) is lifting gaming-platform peers and ETFs, a positive backdrop for Unity’s addressable market. ETF Trends: GAMR Rally
• Neutral Sentiment: Modest analyst action: UBS raised its price target to $28 — supportive but a smaller lift compared with other firms. American Banking News: UBS PT Raise
• Neutral Sentiment: Q2 revenue guidance was issued at roughly $505M–$515M, essentially in line with consensus — suggests steady near‑term revenue outlook but limited upside surprise. Yahoo Finance: Q1 Results & Guidance
• Negative Sentiment: Large one-time charge: Unity took a $279M impairment tied to winding down the ironSource ad network and selling its Supersonic publishing unit — a material hit to reported profitability and a near-term headwind. Proactive: Impairment Charge
• Negative Sentiment: Earnings nuance: GAAP/reported EPS and margins were pressured — Q1 EPS missed by a penny ($0.23 vs. $0.24 estimate) and net margin/ROE remain negative, which can fuel short-term investor concern. Zacks: EPS Miss

About Unity Software

Unity Software is a leading provider of a real-time 3D development platform that enables creators across industries to design, build and operate interactive, real-time experiences. Originally focused on the game development market, Unity’s technology now extends into sectors such as film, automotive, architecture, engineering and construction, delivering immersive content for mobile, desktop, console, augmented reality and virtual reality devices. The company’s core offering comprises a suite of authoring tools, runtime engines and cloud services that streamline the creation and deployment of interactive 3D applications.

The Unity Editor serves as the central hub where developers design scenes, script behavior and iterate on assets.